Posted inInternal / Manufacturing / Production

Defect rate

Definition of this KPI:
the number or percentage of defective or faulty products or services in a given production or service cycle. It is an important Key Performance Indicator (KPI) for companies that place a high emphasis on product quality and customer satisfaction.

  • This KPI can be calculated as: (Number of Defective Units / Total Number of Units Produced) x 100
  • The KPI will be measured as: percentage (%)
  • How to interpret the KPI: lower is better
  • The strategic objective to measure with this KPI: More reliable products
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